OFSI Annual Review: UK Freezes £25b in Russian Assets Under Sanctions Regime

Today’s release of the Office of Financial Sanctions Implementation’s (OFSI) Annual Review casts a spotlight on the true scale and impact of the United Kingdom’s sanctions on Russia. As of March 2024, more than £25 billion of Russian assets have been frozen by the UK, part of the most extensive and coordinated financial sanctions campaign ever imposed against a foreign state.

This figure underscores a broader international effort that has delivered a crippling blow to the Russian economy. Since February 2022, UK and allied sanctions have deprived Russia of over $400 billion – the equivalent of four years of military spending. This is not just an economic figure; it represents a strategic intervention designed to restrict the Kremlin’s ability to fund its aggression in Ukraine.

Sanctions Hitting Hard at the Heart of the Russian Economy

Russia’s financial stability has deteriorated significantly under the weight of these measures. The OFSI review confirms a series of troubling indicators for the Russian economy:

• The rouble has sharply depreciated, eroding public and investor confidence

• Inflation is well above target, further weakening purchasing power

• High interest rates, driven by economic isolation, have made borrowing costly

• A shortage of skilled workers is worsening due to military conscription and emigration

• The federal budget is forecast to remain in deficit until at least 2026

As these pressures mount, Russia has increasingly turned to pariah states such as North Korea and Iran to source military supplies highlighting the impact of sanctions in isolating the country from legitimate global markets.

Economic Secretary to the Treasury, Emma Reynolds, stated:

“The UK has frozen £25 billion worth of Russian assets and, working with our allies, we have deprived Russia of over $400 billion – the equivalent of four years of Russia’s military spending. We will continue to robustly enforce our financial sanctions as part of our wider response to Russia’s barbaric invasion of Ukraine.”

OFSI Strengthens Enforcement to Match Sanctions Ambition

The Annual Review also offers a detailed look at how OFSI is evolving to meet the demands of its growing mandate. With sanctions playing such a pivotal role in foreign policy, the need for robust enforcement has never been greater.

Over the course of 2023-24, OFSI:

• More than tripled the number of enforcement cases closed, sending a strong message to the market

• Issued monetary penalties to International Concierge Services Limited (ICSL) in August 2024 and Herbert Smith Freehills Moscow in March 2025 both linked to breaches of the Russia sanctions regime

• Took the unprecedented step of publicly naming non-compliant firms, including the Wise disclosure in August 2023, highlighting a more transparent and assertive enforcement approach

These enforcement actions reflect a shift in OFSI’s posture from guidance to action supported by investments in staff, systems, and investigative tools.

Sanctions as a Long-Term Strategic Tool

With no clear end in sight to the war in Ukraine, sanctions are becoming a long-term feature of the global economic landscape. For businesses operating across borders, this means compliance is no longer a box-ticking exercise – it is a strategic imperative.

The key takeaways from the review are clear:

• The UK has frozen £25 billion in Russian assets

• Sanctions have caused over $400 billion in economic disruption, equivalent to four years of Russia’s military spend

• OFSI is increasingly active and willing to name and penalise non-compliant firms

• The number of enforcement cases has more than tripled year-on-year, with more expected in 2025

As the UK Government continues to enforce these measures, organisations must remain vigilant. Reviewing internal policies, enhancing due diligence, and keeping pace with OFSI guidance are essential steps to avoid reputational and financial risk.

The message from today’s Annual Review is unambiguous: sanctions enforcement is accelerating, and the consequences of non-compliance are escalating. The UK is not only freezing billions – it is turning up the heat.

Read the full report here.

Read the press release here.